Question

Calculate GNP fc from the following data by (i) income method (ii) expenditure method

Items	Rs. ( in crores)
(i) PFCE	1000
(ii) NDCF	200
(iii) Profits	400
(iv) Compensation of employees	800
(v) Rent	250
(vi) GFCE	500
(vii) Consumption of fixed capital	60
(viii) Interest	150
(ix) Net current transfer from rest of the world	(-) 80
(x) NFIA	(-) 10
(xi) Net Exports	(-) 20
(xii) Net Indirect Tax	80

Answer 1

Income Method NDPfc = iv + v + viii + iii 

 800 + 250 + 150 + 400 = 1600 

GNPfc = NDPfc + dep + NFIA 

 = 1600 + 60 + (- 10) 

GNPfc = 1650 

Expenditure Method 

GDPmp = PFCE+ GFCE+ (NDCF + Dep) + Net export 

 = 1000 + 500 + 260 + (-20) = 1740 

GNPfc = GDPmp + NFIA – NIT 

 = 1740 + (-10) – 80 

 = 1650